Cabinet approves a Rs. 2.89 billion contract for Phase III of the Baseline Road extension, covering a six-lane section in Colombo.
COLOMBO — The Cabinet of Ministers has approved the award of a Rs. 2.89 billion contract, excluding VAT, for the third phase of the Baseline Road Extension Project in Colombo.
The contract has been awarded to Maga Engineering (Pvt) Ltd following a national competitive bidding process in which seven bids were evaluated by a High-Level Procurement Committee.
Phase III covers approximately 0.86 kilometres from Kirulapone Junction to Dutugemunu Street on the Colombo-Horana Road, which is to be developed as a six-lane roadway.
The extension is part of longer-term efforts to improve the Baseline Road corridor and reduce congestion along one of Colombo’s heavily travelled urban routes.
The Government has also had to address land acquisition and resettlement issues connected with Phase III. Earlier this year, Cabinet approved additional housing arrangements for residents affected by land acquisition after a committee headed by the Thimbirigasyaya Divisional Secretary reviewed individual cases. Twenty-nine affected family units had already been allocated housing, with further accommodation recommended for additional residents facing special circumstances.
The latest contract therefore moves the project from preparatory and resettlement work towards another major stage of physical construction.
The Rs. 2.89 billion approved value does not include VAT, meaning the final government expenditure associated with the contract will be higher once applicable taxes are included.
